The Pros and Cons of Debt Management Plans Explained

People facing debt: Could you write off some debt? Get started here: moneynerd.co.uk/get-debt-opti...
The information provided in this video is for editorial purposes only and not intended as financial advice. Free debt counselling, debt adjusting and providing of credit information services are available from MoneyHelper, an independent service set up to help people manage their money. You can find out more by contacting MoneyHelper. MoneyNerd is not associated with MoneyHelper, we just think they're great.
MoneyNerd does not give specific debt advice and we recommend that you always discuss your personal situation with a qualified adviser that works for a company that is authorised and regulated by the Financial Conduct Authority. With your consent MoneyNerd may pass you on to a trusted debt counselling company or insolvency practitioner. MoneyNerd Limited is an Introducer Appointed Representative of Pacific Financial Solutions Ltd who is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 688034) and is classed as a debt counselling firm. Their in house IPs are Jason Bowen who is authorised to Act in the UK by the Institute of Chartered Accountants of Scotland (ICAS). Licence no. 22150 and Laura Stewart who is authorised to Act as in the UK by the Insolvency Practitioners Association (IPA). Licence no. 23590.

[@MoneyNerd]

If you need legal advice about your debt, here's the link to the trial for the online solicitor: justanswer.9pctbx.net/c/2873512/1147978/9320?sharedid=youtube-debt

[@lilmamma807]

Hola, so with a dmp you stop making payments to the creditors directly?

[@MoneyNerd]

Hello @lilmamma807! A DMP provider will speak with the creditors in their client's behalf. Find out more in this useful article: moneynerd.co.uk/debt-management-plan-pros-cons/ Hope this clears up any questions.

[@justagirl707]

If I get a dmp for my credit card debts but I don't include things like clear pay and zilch, will I still be able to use them?

[@MoneyNerd]

Hi, Just a Girl! You should be able to use Zilch and Clear Pay provided you're not in debt with them while under a DMP. Additionally, you should disclose it to your creditor or DMP provider. Here's an article that provides more information about DMP and its finer details: moneynerd.co.uk/debt-management-plan/